Budget Update

In October, we paid off Eric's student loan (which we only had to buy my engagement ring and pay for our honeymoon...). We have now since we started really budgeting and working on our debt in mid-February, we have eliminated payments on 5 loans/credit cards. This has resulted in a reduction of our debt of $15,237. Considering that in 2005 and 2006 our balances on debt increased $5,000 per year, I think this is a great improvement. Unfortunately, we still have a ways to go, but everytime I add up those numbers, it makes me happy that they are getting smaller. We now have left the big ticket items. Two credit cards with high balances, Eric's car, and our 2nd mortgage which is currently on an interest only loan. Moving would certainly get rid of a big chunk with the 2nd mortgage. I now get to start working on the smaller of the credit cards by paying an extra $550 per month. It will still take us another two and a half years to get these three big items paid off (minus the 2nd mortgage). I just hope we can figure a way in our budget to afford two in daycare and continue paying extra on our debt. I would love to be debt free before applying for my loans for med school.